Lanco Infratech

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Lanco Infratech Limited
Type Public company
Industry Energy
Infrastructure
Founded 1986
Headquarters New Delhi, India
Number of locations Global
Key people Lagadapati Madhusudhan
Lagadapati Rajagopal
Products Natural gas
Real estate
electricity generation
distribution
Revenue US$ 2.3 billion (2014)[1]
Employees Over 6500
Website www.lancogroup.com

Lanco Infratech (Lagadapati Amarappa Naidu and Company Infratech) is a large Indian business conglomerate involved in construction, power, real estate, and several other segments. In 2010, the group of companies was listed among the fastest growing in the world.[2] In 2011, the group became the largest private power provider in India.

History[edit]

Lanco was founded by a businessman Lagadapati Amarappa Naidu and his son Lagadapati Rajagopal, who was a member of 15th Lok Sabha representing Vijayawada. While Rajagopal remains inactive, his brother Lagadapati Madhusudan Rao is the executive chairman. Another brother Sridhar Lagadapati, was involved with the company in the early years, but now heads the related entertainment business, Larsco.

Lanco grew at a tremendous pace since the early 1991s.Initial growth was driven by large contracts primarily in construction. Later, other infrastructure areas such as power generation, transportation etc. were also added.

Power plants[edit]

  • Udupi Power Plant a 2x600 MW power plant commissioned in 2012. The power plant is located in Udupi district, Karnataka.On August 14th,2014 ,Adani Power Ltd, controlled by billionaire entrepreneur Gautam Adani, has acquired Lanco Infratech Ltd’s 1,200 megawatt (MW) Udupi power plant in Karnataka in a Rs.6,000 crore deal [3] that will offer the latter cash in hand and help it reduce debt.
  • Anpara Thermal Power Station one unit of 600 MW commissioned in December 2011 and second unit of 600 MW was commissioned in January 2012. The power plant is located in Sonbhadra district, Uttar Pradesh.
  • Lanco Amarkantak Power Plant two units of 300 MW are already commissioned. Two more units of 660 MW are being added to the project.

At this stage it had another 7000+ MW under construction and 10000+ MW under Development and is heading towards successful completion of its Vision of 15,000+ MW by 2015.

Debt Restructuring[edit]

In June 2013, Lanco had won a contract for setting up two 300W power plants in Gujarat. However, the contract was cancelled in October 2013, when the company failed to put up the 10% guarantee required in the contract. [4]

By July 2013, the company had filed for debt restructuring, citing a business slowdown.[5] In September, it was revealed that the company had cut down its employees by nearly half.[6] In December 2006, the company won a large contract citing a collaboration with Singapore firm Globeleq.[7][8]

In 2007, after winning the bid for the 1000MW Anpara-C power plant, Lanco requested that the power output be re-negotiated. Some competing firms protested[9] since the re-negotiation process made the initial bidding meaningless. However, Lanco managed to retain the Anpara project.[10] Repeatedly tarnished by charges of corrupt practices[7][9][11][12][13][14] the company ran into financial trouble and has filed for Corporate Debt restructuring[15] in July 2013.[16] [16][17]

References[edit]

  1. ^ "#29 Madhusudan Rao". Forbes. 2010-09-29. 
  2. ^ "Companies To Watch". Forbes.com. 2010-09-27. Retrieved 2011-03-07. 
  3. ^ "Adani To Buy Lanco's Udupi Plant". Bloomberg TV India. 14 August 2014. 
  4. ^ R. Yegya Narayanan (Oct 18, 2013). "Failure to provide guarantee: Lanco Infratech loses Rs 3,300-cr contract". The Hindu. 
  5. ^ Economic Times (27 Jul 2013). "Lanco Infratech to restructure Rs 7,500 crore debt burden". The Times Of India. Ailing infrastructure firm Lanco Infratech, which has a consolidated debt burden of over Rs 46,200 crore, said it has approached the lenders for restructuring the debt of some Rs 7,500 crore at the holding company level.
  6. ^ pti (Sep 3, 2013). "Lanco Group cuts down 4,000 employees due to slowdown". Times of India. 
  7. ^ a b "Lanco`s Sasan bid annulled". Business-standard.com. 2007-07-25. Retrieved 2011-03-07. 
  8. ^ Lanco blames Globeleq for trouble over Sasan - Livemint
  9. ^ a b "Reliance Power cries foul over Lanco Anpara plans". Financialexpress.com. Oct 6, 2007. Retrieved 2011-03-07. 
  10. ^ B Dasarath Reddy (March 30, 2007). "Newsmaker: G Venkatesh Babu : In the midst of controversy". Business Standard. 
  11. ^ M. Ramesh (March 27, 2012). "Lanco issue with Ministry of Corporate Affairs". The Hindu. quote: Lanco has misled the Government on the question of ownership of projects and has won several projects using an opaque ownership structure when the rule says that a developer can secure only one project.
  12. ^ Rohit Parihar (March 17, 2012). "Congress Gets Burned by the Sun: Rajasthan govt issue fraud certificates to Cong MP for solar projects". India Today. 
  13. ^ "Rs 13k cr scam in national solar plan, claims CSE". Times of India. Feb 2, 2012. Quote: In violation of norms laid down by the government, a single company, Lanco Infratech has allegedly cornered 40% of the contracts bid out for the first phase of the National Solar Mission, garnering 235 mw worth projects with assured revenue of Rs 13,000 crore over the next 25 years.
  14. ^ Lanco seeks additional coal for Anpara C power project in UP - Livemint
  15. ^ "Lanco Infratech to restructure Rs 7,500 crore debt burden". The Times Of India. 2013-07-27. 
  16. ^ a b Friedman, Thomas L. (2009-08-06). "Lanco Infratech in insurance scam | Deccan Chronicle | 2009-08-06". Deccan Chronicle. Retrieved 2011-03-07. 
  17. ^ "Lanco Insurance scam, CM orders probe". Siasat. 2009-08-28. Retrieved 2011-03-07.